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After Trump tariff announcement, the indicator of Chinese copper demand increases by 38%
A measure of the demand for copper in China, its largest consumer, jumped by 38% on Tuesday, indicating a robust appetite for this metal after U.S. president Donald Trump's plans to impose a 50% tariff on imports pushed down London benchmark prices. According to U.S. Secretary of Commerce Howard Lutnick the levy is expected to take effect by August 1. Analysts and traders stated that cargos already in transit or coming from Latin America are likely to arrive before the tariff is implemented. Yangshan Copper Premium On Wednesday, the price of a metric tonne rose to $40 from Tuesday's low of $29 Anant Jatia of Greenland Investment Management a hedge-fund that specialises in commodity arbitrage trading, explained the increase in premium as a result of the expected weakness at the London Metal Exchange. He said that "a lot of copper bound to the U.S. won't make it before tariff implementation date" and will flow back to the LME. Last week, the LME copper contract fell 1.5% to $9.645 per ton. The uncertainty surrounding Washington's plans regarding U.S. scrap copper exports also supported the Yangshan Premium. China's top copper scrap supplier is the United States, but Chinese buyers are reducing their imports since Trump won in November. (Reporting and editing by David Goodman.)
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EnergyX, backed by GM, buys land rich in lithium deposits in the US Smackover Formation
EnergyX, a lithium-technology startup backed up by General Motors has purchased 35,000 acres from Pantera Lithium in the Smackover Formation. This is the latest deal to gain access to the brine formation of the United States, which is teeming full of supplies for the battery metal. EnergyX, a privately-held company, now owns roughly 47,500 acres of the Smackover formation, a geological formation that stretches from Florida to Texas and is filled with brine rich in lithium. The deal also shows the increasing interest in increasing U.S. metal production despite the low market price. Chevron has purchased Smackover land in recent weeks, joining Exxon Mobil and other companies with stakes in the area. Analysts estimate that the Smackover may contain over 4 million metric tonnes of lithium. This is enough to produce millions of electric cars and electronic devices. EnergyX has agreed to pay A$40m ($26.1m) for the land in southern Arkansas. The deal includes A$6m in cash and 2.3m shares of EnergyX, which the companies value at A$14.50 each. EnergyX, controlled by Teague Egan as CEO, has previously discussed a listing. Pantera, who had originally agreed to purchase the acreage by 2023, will become a minority investor in EnergyX once the deal is closed, expected in the latter part of this year. EnergyX will also build a refinery to process the lithium in Smackover brine. The company hopes to produce 12,500 metric tonnes of lithium annually by 2028, and 30,000 by 2030. GM has the first right of refusal to purchase lithium from any EnergyX project. GM led a $50-million financing round in 2023. Direct lithium extraction (DLE) is the only way that all companies can extract lithium from Smackover. This has never been done commercially before. EnergyX must also apply to Arkansas officials for a rate for lithium royalties. In recent weeks, Arkansas officials have approved rates for nearby projects of Standard Lithium and Exxon. EnergyX attempted to purchase Galan Lithium assets in Argentina last year, but failed. EnergyX is backed by a consortium led South Korean conglomerate Posco Holdings. EnergyX also has a lithium development project in northern Chile.
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Chile and Mexico prepare for Trump's copper tariff announcement
The President Claudia Sheinbaum stated on Wednesday that Mexico could redirect copper it usually sends to the U.S. in order to avoid tariffs by the Trump administration. Her Chilean counterpart Gabriel Boric, however, said he has yet to hear anything from the U.S. As part of his effort to increase domestic production, U.S. president Donald Trump announced on Tuesday that he will soon announce a tariff of 50% on copper imports. Copper accounts for nearly half the metal used in the United States. News is likely to be a newsworthy event Set off a scramble Ship copper to the United States before tariffs are implemented, which is expected by the end or August 1. Chile is the Top refined copper supplier Mexico is ranked fifth in the world, behind the U.S. The United States is a relatively minor part of the Mexican and Chilean exports of copper, which are primarily sent to China in both cases. Sheinbaum noted that Mexican officials will be in Washington, D.C. on Friday to discuss previously scheduled issues of trade, immigration and security. She said at her daily press conference held in Mexico City that "copper is needed everywhere in the world. There are many options." "Our responsibility is seeking the best possible negotiations with the U.S., and at the same look for other options to national production and exports in other destinations." Boric told reporters in Santiago that the U.S. government had not yet communicated with him, and he was waiting for official confirmation. Tariffs The copper cathodes would be included, but "whether or not this will actually happen is a question". He advised caution until more information was available, and seemed to criticize Trump's penchant for making impromptu statements, which he often shares on social media. Boric, a reporter, said that in diplomacy policy is not made through social media but rather formal communication. Reporting by Daina-Beth Solomon, Fabian Cambero and Ana Isabel Martinez from Mexico City and Santiago; editing by Adam Jourdan & Mark Heinrich
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Trump hosts five African leaders amid tariffs and aid cuts
On Wednesday, President Donald Trump met with leaders of five African countries as the U.S. president intensified a trade conflict that threatens developing countries that depend on the trade with the largest economy in the world. A White House official confirmed that Trump will host leaders from Gabon and Guinea-Bissau as well as Liberia and Mauritania for a lunch and discussion at the White House. The discussions are expected to be focused on business opportunities. Africa experts await Trump's announcement of dates for a larger summit with African leaders. This could be in September, around the time for the United Nations General Assembly. The mini-summit this week is the latest attempt by successive U.S. Administrations to counter perceptions that the U.S. has neglected a continent on which China has made increasing economic inroads. Since Trump's inauguration in January, the Trump administration has imposed steep cuts on foreign aid to Africa as well as waged a tariff-war against U.S. trading partner. Melania, Trump's wife, visited Africa during Trump's first term. In 2018, some African politicians branded Trump as a racist after it was reported that he had called immigrants from Africa and Haiti "shithole countries". Trump falsely accused South African President Cyril Ramaphosa of genocide against whites and land seizure during a heated White House meeting in May. The focus of the meeting on Wednesday was likely to be economics. The U.S. International Development Finance Corporation announced earlier that day that it would provide funding for project development at the Banio Potash Mine, Mayumba in Gabon. This will help Gabon to reduce its dependency on imported goods. Conor Coleman, DFC's head of investments, said that DFC's efforts benefit not only the countries and communities in which they invest, but also U.S. interests by opening up new markets, strengthening existing trade relationships and promoting an economically prosperous and secure global economy. Trump's government has continued to send letters informing trading partners that higher tariff rates will take effect on August 1. It also launched a new front of his trade war with members of the BRICS Group of developing countries. The Obama administration also cut large swaths from U.S. Foreign Aid for Africa in an effort to reduce spending that it deems wasteful, and refocus on a "America First" agenda. The Lancet Medical Journal published a study last week that showed these cuts could lead to an additional 14 million deaths by 2030. The U.S. government has stated that it will prioritize trade and investments over charitable assistance, and focus on increasing opportunities for U.S. companies. The five countries that were invited all have rich natural resources including gold, cobalt and lithium, as well as manganese ore, iron, diamonds. China has invested heavily in Africa, particularly in the extraction of resources, in recent years. African Union officials are questioning how Africa can deepen its trade relations with the U.S., given what they call "abusive tariff proposals" and visa restrictions that primarily target travelers from Africa. Ambassador Troy Fitrell has denied allegations that the United States engages in unfair trade practices. (Reporting and editing by Deepababington, Matt Spetalnick, Andrea Shalal)
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Crews search flood-ravaged central Texas for missing persons
On Wednesday, search teams continued to sift through piles of debris and mounds in Texas Hill Country as the hopes of finding survivors diminished five days after flash flooding ravaged through the area, killing at least 120 people, many of them children. According to the figures released by Texas Governor Greg Abbott, as of Tuesday evening there were still more than 170 missing people. Since Friday, no one has been found alive. Kerr County was the site of most fatalities and missing persons. Kerrville was completely devastated by torrential rains that swept through the county early Friday morning, July 4. The rains dropped more than one foot of rain in under an hour, and flooded the Guadalupe River up to nearly 30 feet (9 metres). At a press briefing on Wednesday, Sheriff Larry Leitha informed reporters that the death toll for Kerr County had reached 95, which included three dozen children. This figure includes at the very least 27 girls and their counselors who attend Camp Mystic on the Guadalupe, a Christian summer retreat for girls. Authorities have warned the death toll is likely to continue rising as floodwaters recede. In New Mexico, a flash flooding on Tuesday killed three people, including two young children. The village of Ruidoso is located in the mountains, around 135 miles (216 km) south of Albuquerque. The village released a statement that the flooding was caused by heavy rains that fell over burn scars from wildfires. This led to a rapid runoff that saw the Rio Ruidoso River reach a new record of 20 feet. That's five feet higher than the previous high. Scientists claim that climate change is causing extreme flooding events to be more damaging and frequent by creating warmer, wetter weather patterns. The public officials in Texas were questioned for days about whether they should have warned the people earlier, allowing them to get to higher ground before the floodwaters raged. The sheriff was pressed again at Wednesday's press conference to answer questions about the time it took officials to respond to the "Code Red" warnings regarding the flash floods that occurred in the early morning hours of the 4th. He refused to directly respond, stating that his main focus was finding the missing victims. A full analysis on what went wrong in the response will come later. He said, "We will respond to those questions." I can't say when, but it will be in a few weeks or days. We will get them. "We're not trying deflect them." Dalton Rice, the city manager of Kerrville, said that the amount and speed of rain fell exceeded forecasts. There was no time to evacuate people without putting them in further danger. Abbott announced on Tuesday that Texas lawmakers would convene a session special later this month in order to investigate emergency response and provide funds for disaster relief. (Reporting from Jane Ross in Kerrville, Additional reporting by Rich McKay, Andrew Hay and Joseph Ax. Writing by Joseph Ax. Editing by Frank McGurty & Bill Berkrot.
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Trump hosts five African leaders amid tariffs and aid cuts
On Wednesday, President Donald Trump met with leaders of five African countries as the U.S. president intensified a trade conflict that threatens developing countries that depend on the trade with the largest economy in the world. A White House official confirmed that Trump will host leaders from Gabon and Guinea-Bissau as well as Liberia and Mauritania for a lunch and discussion at the White House. The discussions are expected to be focused on business opportunities. Africa experts await Trump's announcement of dates for a larger summit with African leaders. This could be in September, around the time for the United Nations General Assembly. The mini-summit this week is the latest attempt by successive U.S. Administrations to counter perceptions that the U.S. has neglected a continent on which China has made increasing economic inroads. Since Trump's inauguration in January, the Trump administration has imposed steep cuts on foreign aid to Africa as well as waged a tariff-war against U.S. trading partner. Melania Trump, Trump's wife, visited Africa during Trump's first term. In 2018, some African politicians branded Trump as a racist after he was reported to describe immigrants from Africa and Haiti coming from "shithole countries". During a heated White House meeting in May, Trump made explosive false accusations of white genocide during which he accused Ramaphosa of land seizure and stealing. The focus of the meeting on Wednesday was likely to be economics. The U.S. International Development Finance Corporation announced earlier that day it would provide funding for project development at the Banio Potash Mine, Mayumba in Gabon. This will help Gabon to reduce its dependency on imported goods. Conor Coleman, DFC's head of investments, said: "DFC’s efforts benefit not only the countries and communities in which they invest, but also U.S. interests by opening up new markets, strengthening trading relationships, and promoting an increasingly secure and prosperous global economic environment." Trump's government has continued to send letters informing trading partners that higher tariff rates will take effect on August 1. He also launched a new front of his trade war with members of the BRICS developing country group. The Obama administration also cut large swaths from U.S. Foreign Aid for Africa in an effort to reduce spending that it deems wasteful, and focus on a "America First" agenda. The Lancet Medical Journal published a study last week that showed these cuts could lead to an additional 14 million deaths by 2030. The U.S. government has stated that it will prioritize trade and investments over charitable assistance, and focus on increasing opportunities for U.S. companies. The five countries that were invited all have an abundance of natural resources including gold, cobalt and lithium, as well as manganese ore, diamonds and iron ore. These are vital for the use of current technologies. China has invested heavily in Africa, particularly in the extraction of resources, in recent years. African Union officials are questioning how Africa can deepen its trade relations with the U.S., given what they call "abusive tariff proposals" and visa restrictions that primarily target travelers from Africa. The top U.S. ambassador for Africa, Troy Fitrell has denied allegations of unfair U.S. trading practices. (Reporting and editing by Deepababington, Matt Spetalnick, Andrea Shalal)
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Kenya's President orders police to shoot violent demonstrators in the leg
William Ruto, Kenya's president, said that the police should shoot vandals who damage businesses in their legs to incapacitate. This comes two days after 31 people died during nationwide antigovernment protests. Police dispersed the crowds by using tear gas and water cannons. Some businesses, supermarkets and hospitals have been looted or damaged. Ruto, in a recent speech, said that anyone who burns other people's belongings should be shot and taken to hospital. The legs should be broken, not the body. Last month, the death of a Kenyan political blogger while in police custody sparked a new protest movement fueled by anger about the rising cost of living as well as what they claim is police brutality. This comes a year after protesters against proposed tax increases stormed the parliament. The protesters' rallying cry, which is mostly made up of young adults who are desperate for work and who have been organised via social media, is that Ruto would only be in power for one term. His government, which won power in almost three years as a champion for the poor and a promise to end extrajudicial murders, has defied public dissatisfaction. Kipchumba Mukomen, his interior minister, called the protests of last month a "coup" attempt by "criminal anarchists". Kenya National Commission on Human Rights, a government-funded organization, said that criminal gangs with whips and machetes were operating in Nairobi and Eldoret (a town located in the Rift valley) during Monday's protests. The police have not yet commented on the observations of the commission, but they have said in previous statements that they do not deal with "goons". "Those who attack Kenyans and police officers as well as security installations, businesses, and business establishments are terrorists." Ruto later posted on Wednesday that such criminal acts were a declaration. We will not let retrogressive elements who are looking for shortcuts to power destroy our country." (Reporting and writing by Vincent Mumo, Hereward Holland, Ammu Kanampilly, Alison Williams).
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What can LA teach us as wildfires threaten Europe?
Experts say that the LA fires provide lessons on urban wildfires Fires are more likely to start in areas of urban sprawl and land abandonment Experts advise focusing on long-term prevention Joanna Gill According to a report published in May by the European Academies Science Advisory Council (which advises European policymakers), more than twice as many cities in Europe are at high risk of wildfires as in North America or Asia. Experts say that the ferocious fires which ravaged Los Angeles last January, killing 22 people and destroying 12,000 homes provide a powerful lesson and warning to European policymakers. The myth of fire suppression has collapsed in California, said Elias Tziritis. He is a veteran firefighter, and coordinator for forest fires at WWF Greece. "Fires have become more intense." He said that we need to build a society that is fire resistant. FIREBELT SUBURBS According to a U.N. report, the global warming will increase extreme fire risk by 50% by the year 2050. Environment Programme. She said that "the human element is managed in certain areas, with projects to reduce abandon land, and managing the vegetation to decrease the fuel availability." Vandecasteele stated that "but still, not enough is being managed to manage the present, let alone the future, expected effects of climate change." What began as a wildland blaze in Los Angeles quickly became an urban fire as powerful winds blew flames from one house to another across parched terrain. Experts say that the destruction was caused by the urban sprawl in California and the wood construction of many homes. Urban sprawl is a risk, even though Europe's buildings made of mostly concrete and stone would be more resistant. Lindon Pronto is a senior fire management specialist at the European Forest Institute. He was a former firefighter. "But it's not necessarily the full-on house-to-house scenario that we saw in Los Angeles." California's fire-resistant materials rules were credited for reducing the damage and stopping the chain reaction. However, houses outside of the regulated zone were still vulnerable because they weren't bound by the same codes. Vandecasteele stated that Europe should learn from Los Angeles by noting, for instance, the importance of mapping risks in borderlands where people and forests or fields meet, to ensure regulations are up-to-scratch. You can implement lower vegetation green buffer strips to stop fires spreading. Unregulated construction is another challenge. Tziritis said that illegal construction in areas prone to wildfires increases the risk of fires in Greece. Living with Fire Mediterranean countries share a similar climate with Los Angeles: hot, dry summers; mild winters; and long fire season. But other European countries also face a growing threat, as was seen in 2022, when hundreds of fires broke into London on one day due to record temperatures. Experts say that climate change will likely intensify extreme weather. A shift in mentality is therefore needed. Thomas Elmqvist is a professor of Natural Resource Management at Stockholm University. He said EU regulations to promote sustainable agriculture and restore ecosystems in order to make forests resilient and reduce wildfire risks must be applied. "Because L.A. taught us that the city had neglected its landscape." He said that although they had regulations, they were not implemented. Experts also said that nature protection laws must be updated so as to allow prescribed burning in order to clear vegetation, and to help slow down the spread of wildfires. Pronto said that "most national legislations in Europe do not recognise the use (of fire) as a tool for management" to clear vegetation. He said that if you don't clear it, there is "more fuel" for the wildfire to play with. He said that forests should be allowed to regrow after fires rather than being replanted. "Nature is able to correct itself." It is also important that European policymakers think beyond the next election. Elmqvist said, "As an elected official you can buy an aeroplane to show off what you have done."
Bank watchdogs say extreme weather conditions could lead to a 5% decline in the euro zone's GDP.
Heatwaves, wildfires and flooding could have the same impact on the euro zone's GDP as the global financial crises or COVID-19, according to a senior official at the European Central Bank.
According to Livio Stracca, deputy director at the ECB, a series of severe weather events could lead to a near-term decline in the euro zone's growth of almost 5%. This is based on ECB's most extreme climate scenario, which was developed by ECB and 145 bank supervisors this year.
The peak negative impact on the euro area's GDP is about 5%. This is the same magnitude as the global financial crises and just a bit less than COVID-19, said Stracca. He also chairs the Network for Greening the Financial System workstream on scenario analysis and design.
The findings are based upon a set of new tools developed by the NGFS. This group of central banks and supervisors is working to address climate risk in the financial and economic sectors.
These tools are designed to help companies and banks understand the impact of climate change on their business in the short-term by testing a number of climate-related scenarios.
The group concluded that the euro zone's growth would be most adversely affected by "Disasters and Policy Stagnation", whereby heatwaves and droughts in 2026 are followed by a combination or floods and storms a year later in 2027.
Another scenario suggests that if the euro zone follows through on its net-zero policies, which include its plan to reduce greenhouse gas emissions by 55% by 2030, this could help mitigate losses.
In a blog posted by the ECB, Stracca and Bundesbank member Sabine Mauderer stated that climate-related risks were an immediate concern to financial stability and economic development.
The NGFS scenarios... show that a global coordinated net-zero initiative would safeguard the economic interests of the euro zone over the next five year."
The NGFS already has a set of widely-used climate scenarios. But this is the very first time that they offer tools to assess short-term impacts and physical effects. Reporting by Virginia Furness Editing Mark Potter
(source: Reuters)